Governor urged to support ice storm reimbursement

A letter to Governor Deval Patrick, signed by selectmen in the Wachusett region, urges Patrick to support state reimbursement for cost of the ice storm cleanup.

"With the economy in decline and serious cuts to local aid to cities and towns in both FY09 and FY10, it is imperative that towns receive the additional 25 percent for eligible storm damage costs from the state. The Wachusett Towns of Holden, Paxton, Princeton, Rutland and Sterling request that your administration energetically support any avenue that would provide a 25 percent reimbursement," the letter states.

State Representative Robert Rice of Gardner filed a Bill for a reserve to provide special, non-recurring payments to certain municipalities for the purpose of providing emergency disaster relief as related to damages associated with the ice storm of December 11 and 12.

In January, selectmen and light commissioners signed an agreement to borrow $4 million to fund repairs associated with the ice storm. The borrowing was for 90 days at 3.25 percent interest, but voters will be asked to extend the note for two years.

At a meeting with selectmen several weeks ago, Town Administrator Dennis Rindone said the town is working to obtain percent reimbursement from the Federal Emergency Management Agency and 25 percent reimbursement from the state. He noted at the time that without the state's contribution the town will owe $250,000 for cleanup, requiring a debt exclusion.

Of the $4 million borrowed, $3 million was earmarked for the Princeton Municipal Light Department for repair of the electrical distribution system that was badly damaged in the ice storm. So far, PMLD has spent $1.7 million to repair the system and expects to incur additional expenses as repair is made to all the temporary fixes that were done to get power restored as fast as possible. It is expected that FEMA reimbursement will help toward paying back the $3 million for the light department's expenses. In the meantime, PMLD has to pay the loan used to finance the repair cost. Expenses not reimbursed will have to be paid for through electricity rates.